Final answer:
The question is about a method to calculate the cost of recreating an existing building at contemporary prices, considering inflation and current market rates. This involves determining present discounted value and using mathematical models to estimate materials, labor, and other costs.
Step-by-step explanation:
The student is asking about a method of calculating the cost of constructing a duplicate building utilizing the same materials, design, and workmanship, but factoring in the current prices. This process involves assessing the inflation rate applied to the cost of construction materials and labor since the original building was constructed.
One commonly used strategy is to determine the present discounted value of the construction costs. This financial tool helps to compare the current costs to future benefits, which is also applicable in determining the expenses of replacing an existing building today. Mathematical models are typically employed in the initial stages of design to estimate costs for various approaches, which includes the cost of materials, labor, and other associated expenses today as opposed to the initial construction period.
In essence, this process is not just about replicating the past expenses but understanding the current market rates and projecting the costs based on current values. This involves both a scientific approach to gather tangible data and a form of art to forecast economic conditions and price changes over time.